3 ms·
In the long run you would see supply increases for an inelastic good, but, due to the demand shock that is a natural disaster, the demand curve moves to the rig
by ianleeclark 9y ago
In the long run you would see supply increases for an inelastic good, but, due to the demand shock that is a natural disaster, the demand curve moves to the right in the short run, thus increasing price.
Not sure what the best solution is, though.